This invention relates to a method using a computer for use in collecting on judgments.
A problem endemic to civil litigation is the collection of judgments against defendants. A plaintiff""s troubles and an attorney""s work frequently continue even after a monetary award has been obtained from a court. The award must be collected from the defendant or defendants.
Collection on a judgment frequently requires that bank accounts be located and process served on the banking institutions. This is a time consuming process. Banks possibly containing defendants"" funds must first be located and then contacted to determine whether one or more judgment defendants have accounts at the respective institutions. Upon ascertaining the existence of defendants"" bank accounts, process must be served, responses tracked, and money collected.
The entire collections process is generally urgent because of the possibility that defendants will close the bank accounts in anticipation of collection. The funds are either converted into some other form or transferred out of the country.
Another problem with the collections process is compensation for the collections work. Understandably, judgment plaintiffs are not willing to pay an amount greater than the amount to be collected. Generally, judgment plaintiffs are willing to pay only some fraction of the judgment award. Frequently, the payment is made as a contingency, out of any amount that may be collected on the judgment.
Throughout the collections process, records must be maintained to identify which banks have been canvassed, which banks have defendants"" accounts, which banks have been served, which banks have responded, how much money has been collected from the different accounts, etc.
An object of the present invention is to provide a computer method for collecting on judgments.
Another object of the present invention is to provide such a method which optimizes the likelihood of uncovering banks holding accounts of judgment defendants.
These and other objects of the present invention will be apparent from the drawings and detailed descriptions herein.
A method for collecting on judgments comprises, in accordance with the present invention, the step of maintaining zip code data in electronic form in a memory of a digital computer, the zip code data including, for each given zip code, a list of respective zip codes all geographically contiguous to the given zip code. The method also includes the step of maintaining bank data in electronic form in the memory of the digital computer, the bank data including bank identification information and address zip codes for banks covered by the bank data. In implementing the method, a zip code for a judgment defendant is entered into the computer. The computer is then operated to determine (i) a plurality of zip codes contiguous to the entered zip code and (ii) target banks with addresses having one of the entered zip code and the determined contiguous zip codes. Upon determination of the contiguous zip codes and the target banking institutions, the computer automatically prints (i) correspondence to at least some of the determined target banks and (ii) mailing addresses for use on envelopes for the correspondence.
The correspondence alerts the target banks as to the existence of a judgment against one or more identified defendants and inquires about the existence of accounts in the name or names of the defendants. The mailing addresses may be printed directly on envelopes or on mailing labels.
According to further features of the present invention, the method further comprises the steps of operating the computer to automatically calculate costs of mailing the correspondence, inputting spending limit information into the computer, and terminating the printing step upon the attainment of a total mailing cost at least equal to a predetermined spending limit. The computer may be operated to automatically compute the predetermined spending limit from the spending limit information.
According to another feature of the present invention, the method further comprises the step of entering into the computer an additional zip code for the judgment defendant. In that case, the computer is operated to automatically determine (a) a plurality of further zip codes contiguous to the additional zip code and (b) additional target banks with addresses having one of the additional zip codes and the further zip codes. The computer then automatically prints correspondence to at least some of the additional target banks and mailing addresses for use on envelopes for such correspondence.
Preferably, zip codes for the judgment defendant entered into the computer correspond to home and work addresses for the judgment defendant.
In accordance with another feature of the present invention, the method further comprises the step of additionally operating the computer to determine (1) a plurality of further zip codes contiguous to the determined contiguous zip codes and (2) further target banks with addresses having one of the further zip codes. The computer automatically prints (1) correspondence to at least some of the further target banks and (2) mailing addresses for use on envelopes for such correspondence. In accordance with a further feature of the present invention, the method further comprises the step of operating the computer to automatically eliminate, from among the further zip codes, each zip code identical to one of the determined contiguous zip codes.
In accordance with a further feature of the present invention, the method further comprises the step of maintaining, in electronic form in the memory and for each the given zip code, a list of counties including a primary county in which the given zip code is located and all counties geographically contiguous to the primary county, the bank data including bank identification information and address zip codes for banks located in the counties. The computer is operated to determine (A) a plurality of counties contiguous to the primary county of the entered zip code and (B) further target banks located in one of the primary county and the determined contiguous counties. Upon the determination of the contiguous counties and the target banks in those counties, the computer prints (i) correspondence to at least some of the further target banks and (ii) mailing addresses for use on envelopes for such correspondence.
A computer method in accordance with the present invention enables attorneys to intelligently and cost effectively locate judgment debtors"" bank accounts. It is contemplated that the computer method provides prompts to the operator, soliciting information about the debtor, combines the input information with bank industry data, and filters the results via an algorithm to generate a multi-tiered list of likely banking institutions. The computer method includes built-in cost management features which enable the attorney who works on a contingency basis, or who is restricted by a client""s budget, to mail only to those banks where it is statistically likely that a direct deposit account will be maintained. Here, the computer method takes into account the costs of issuing its own restraining notices based on user definable expenses.
Generally, it is contemplated that the computer is provided with a list of banks in a predetermined area about the location of the attorney""s office or in another metropolitan area of the user""s choosing. Additional areas can be subsequently added, if necessary or desired.